{"id":4792,"date":"2025-05-13T13:08:51","date_gmt":"2025-05-13T03:08:51","guid":{"rendered":"https:\/\/theonsitemanager.com.au\/news\/?p=4792"},"modified":"2025-05-13T13:08:53","modified_gmt":"2025-05-13T03:08:53","slug":"queenslands-rental-market-a-new-year-even-fewer-options","status":"publish","type":"post","link":"https:\/\/theonsitemanager.com.au\/news\/queenslands-rental-market-a-new-year-even-fewer-options\/","title":{"rendered":"Queensland\u2019s rental market: A New Year, even fewer options"},"content":{"rendered":"\n

Queensland\u2019s rental market has started 2025 with even fewer options for tenants, as vacancy rates continue to tighten across most of the state in the March 2025 quarter, with the number of tightening regions outweighing those that eased.<\/p>\n\n\n\n

According to the Real Estate Institute of Queensland\u2019s (REIQ) latest Residential Vacancy Rate Report, released today, 24 of the 50 regions tightened, 12 held steady, and just 14 saw any relief.<\/p>\n\n\n\n

The statewide vacancy rate has slipped from 1.0% to 0.9% \u2013 breaking a three-quarter period of steady conditions and reinforcing the entrenched strain on rental supply.<\/p>\n\n\n\n

Notably, the pressure is being felt across most of the state, with 38 out of 50 local government areas (LGAs) and subregions reporting vacancy rates of 1.0% or less \u2013 this puts it firmly in \u2018tight\u2019 territory and far below the REIQ\u2019s healthy benchmark of 2.6\u20133.5%.<\/p>\n\n\n\n

REIQ CEO Antonia Mercorella said Queensland\u2019s rental market has started 2025 with even fewer rental options, with vacancy rates tightening in nearly half of the report\u2019s regions.<\/p>\n\n\n\n

\u201cThe pressure continues to mount in our inner and outer suburban areas \u2013 particularly in Brisbane and surrounds, which recorded one of the most notable tightening movements this quarter,\u201d Ms Mercorella said.<\/p>\n\n\n\n

\u201cHowever, despite these results, property managers are reporting more subdued letting activity, increased days on market, and lessors being more careful with tenant selection.<\/p>\n\n\n\n

\u201cThis paradox of lower activity despite a tight market reflects some fatigue on both sides: many renters are being priced out, stretching too far, or grouping up to rent, while lessors are holding firm on terms and expectations due to rising costs and more onerous legislative requirements.\u201d<\/p>\n\n\n\n

Brisbane LGA\u2019s vacancy rate dipped to 1.0%, with surrounding regions like Pine Rivers, Redcliffe, and Moreton Bay now sitting between 0.6% and 0.7%. Inner Brisbane (0\u20135km radius) saw a more modest easing to 1.2% but remains tight by market standards.<\/p>\n\n\n\n

At the more extreme end, Cook and Goondiwindi both recorded 0.0% vacancy, meaning virtually no lasting rental availability. A further 16 regions – including Maryborough, Toowoomba, Caloundra Coast, and the Southern Downs – reported rates at or below 0.5%.<\/p>\n\n\n\n

On the other end of the scale, Noosa\u2019s vacancy rate rose to 2.0%, making it the most significant relaxation in this quarter\u2019s report. However, this is unlikely to offer much comfort to renters, as price points in those areas remain largely out of reach for everyday Queenslanders. Vacancy doesn\u2019t automatically equate to accessibility.<\/p>\n\n\n\n

The Bay Islands (2.5%) and Isaac (3.2%) remain the only regions in the \u2018healthy\u2019 range, but these areas are the exception, not the rule.<\/p>\n\n\n\n

Ms Mercorella said there\u2019s little doubt that structural undersupply remains the key driver of the crisis, and that policy settings must do more to incentivise private investment and fast-track new housing supply.<\/p>\n\n\n\n

The March 2025 building approvals data released by the ABS this week revealed that the pipeline of new housing construction is well below the required volume to meet the National Housing Accord target.<\/p>\n\n\n\n

For Queensland to contribute its fair share to the target, the pipeline must include 4,100 new dwellings each month. However, in March 2025, there were only 3,116 dwellings approved in seasonally adjusted terms and there is no sign of an upward trend. The ABS\u2019s trend estimate for building approvals has fallen from 3,120 in July 2024 to 2,957 in March 2025.
<\/p>\n\n\n\n

\u201cQueensland’s stubbornly tight rental conditions are symptomatic of years of underinvestment in housing supply, compounded by rapid population growth,\u201d she said.<\/p>\n\n\n\n

\u201cThere\u2019s no silver bullet, but the solution lies in one thing: more housing.<\/p>\n\n\n\n

\u201cWe continue to see a severe imbalance between supply and demand in Queensland\u2019s rental market, and it is crucial that we focus on addressing the roadblocks that are preventing new housing from coming online.<\/p>\n\n\n\n

\u201cWhether it\u2019s investing in enabling infrastructure, land release, or planning reforms, all levels of government must work together to ensure that there are enough properties available to meet demand.<\/p>\n\n\n\n

\u201cUntil all levels of government focus on cutting red tape, fast-tracking approvals, and removing barriers to private investment, these numbers will not meaningfully improve.\u201d<\/p>\n\n\n\n

The last phase of rental reforms for Queensland came into effect from 1 May 2025. With tenancy legislative change and the Federal election result behind us, and the Reserve Bank\u2019s next cash rate decision in the next fortnight, the REIQ expects greater certainty to return to the market – encouraging more long-term decision making from buyers, sellers, and investors.<\/p>\n\n\n\n

Fast facts: March Quarter 2025<\/strong><\/p>\n\n\n\n